In a shocking move, Alibaba Investment, the investment wing of the e-commerce titan Alibaba Group, has sold a staggering 151.3 million shares of Singapore Post (SingPost) for S$64.4 million on September 9.

This massive sell-off has drastically reduced Alibaba's stake in the national postal service to a mere 4.61%, down from 11.33%, leaving them with just 103.9 million shares. Previously, they held a hefty 255.1 million shares, according to recent filings.

Falling below the crucial 5% ownership mark means that both Alibaba Investment and its parent company no longer qualify as substantial shareholders in SingPost, signaling a significant change in their investment strategy.

The shares were offloaded at approximately S$0.426 each, which is notably 5.3% lower than SingPost's closing price of S$0.45 on the same day—a drop that adds to the stock’s decline.

Alibaba's journey with SingPost began back in 2014 when it acquired a roughly 10.4% stake for S$312.5 million, paying S$1.42 per share. Their involvement deepened in 2016 when regulators allowed Alibaba to increase its stake, followed by a significant injection of capital in early 2017, raising its ownership to 14.4%.

However, it's clear that Alibaba’s strategy is now pivoting towards divestment, leaving the future of this partnership uncertain as the e-commerce giant recalibrates its investments.